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5 Tips for eCommerce Brands to Optimize Return Costs!

Updated: Dec 8, 2022

What percentage of online purchases end up being returned? A high number of e-commerce returns can be detrimental to your bottom line, diminishing your conversion rate and posing a danger to your organization.

In 2020, consumers returned goods totaling $428 billion, accounting for little more than 10% of retail sales. According to the National Retail Federation, returns are estimated to cost retailers $101 billion.

This article highlights five ways eCommerce brands optimize return costs. Now let's get started:

5 Tips eCommerce Brands Optimize Return Costs

1. Using a liberal return policy

Customers will be more likely to buy if they are assured that they may easily and quickly return the item if it does not meet their needs. If you provide this assurance before the consumer makes a purchase, they will feel more at ease making the transaction. Make it simple for customers to return, and offer suggestions for additional items they might enjoy.

2. Utilize exchanges over returns

It is recommended that online retailers provide instant reimbursements for returned items, as well as speedy exchanges for items with a similar value. If you let your consumers wait until the return procedure is complete before issuing a refund, you can be sure they will go to another merchant to purchase the same thing.

3. Getting clients' feedback

Collect information from clients on the return forms regarding why they are sending your products back. Read some reviews on the internet. Take the time to discover the reasons behind the returns.

You will then be able to remedy those issues by taking the proper action, such as adding more product views, writing improved descriptions, correcting size inconsistencies, and other similar activities.

4. Focus on packaging

The arrival of a damaged package or a broken product is another typical justification for returns. Your products' packaging should indicate whether they are delicate or require particular shipping circumstances.

Packaging must be both cost-effective and protective enough to guarantee secure delivery.

Nevertheless, another element might be at work alongside the kind of packaging employed. Additionally, how the products are packaged may cause more or less damage.

5. Extending the return window

Do you want to reduce the return cost for your brand? Offer customers an extended return window to ensure they are comfortable with the product you are selling them.

Which Return Strategies Don't Work?

Manual returns

Automating your eCommerce store is one of the finest ways to lower your return rate. Due to inefficient stock management, returns are frequently processed.

Therefore it is essential to automate and optimize supply chain procedures to reduce the likelihood of human error, which tends to multiply as a company expands.

Failure to identify customers

Do you have a list of your customers? It can be challenging when you can't identify your customers during product returns. Ensure you set up a program for customer identification.


While these five steps will undoubtedly reduce the number of returns in your eCommerce store, they won't eliminate them.

It will be simpler to turn those inevitable returns into something good for the customer once you know how to limit returns in eCommerce and put these recommendations into practice.

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